Home  Business InfoPro releases detailed report on impact of Israeli war on Lebanon |
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InfoPro releases detailed report on impact of Israeli war on Lebanon |
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Written by Daily Star
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The CDR estimated indirect losses at $3.6 billion while indirect losses are believed to be much higher.
Nov. 18, 2006- The first detailed book on the impact of the Israeli war on Lebanon's economy was released by InfoPro on Friday. "This is the fruit of a project that the InfoPro Center for Economic Information has undertaken to get a detailed introspection on how every economic sector was affected by the war and what it needs to get back on its feet," InfoPro said.
The report took stock of direct and indirect damages, in addition to the proposals advanced by various stakeholders for short-term remedies as well as for sustainable recovery.
InfoPro said that this is the first comprehensive postwar study to be published.
It added that during the war - and after the hostilities had ended, many figures on damages were announced by business organisms and the public sector.
"These figures left observers puzzled, and the true picture of the economic landscape was blurred. Getting a clear view on the real economic impact was one of the main motives behind this study."
The CDR estimated indirect losses at $3.6 billion while indirect losses are believed to be much higher.
InfoPro said that it operated on several fronts. It undertook several field surveys to measure the impact of the war on the operations of businesses, their cash flows, and employment. Interviews with hundreds of economists, business managers and trade organizations, were undertaken as well as 1,500 households throughout the country.
The report has some good news and some bad news. It says the extent of damage is much smaller than what was originally thought, especially in indirect damages. With the exception of companies directly hit by bombings, most businesses that were forced to shut down or whose activities were seriously diminished have quickly gotten back on their feet and are operating at a reasonable pace. But the full economic impact is still unfolding and the ripple effect of the war will take several more months. The political uncertainty is also not helping, and is in fact compounding the problem.
The war has had two main negative consequences. The first one is a labor problem, and the second is a shrinking economy with all its derivative challenges. Even before the war had started there was a mismatch between supply and demand in the labor market. This means many people were looking and not finding jobs. At the same time many companies had vacancies that were difficult to fill. The unemployment level on the eve of the war was around 6.7 percent. Right after the war it had jumped to over 15 percent according to the survey undertaken by InfoPro. More than 100,000 people left the country permanently or for a long time, depriving the labor market of much needed talent. - The Daily Star
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